From what I have noticed, some lenders have more strict requirements for your documenting the sale of personal items.
You may want to have the buyer pay with a cashiers check from a bank (where you accompany the buyer to get the cashiers check).
That way you can show the value of the truck, the actual bill of sale, the cashiers check paying for the truck, the deposit of the cashiers check into your bank account and that may satisfy the u/w. Your LO can call the u/w to see exactly what they need for you to show.
FHA itself is less restrictive, but the lender's requirements over ride the FHA general guidelines. FHA's criteria is below (you can look it up at hud.gov)
- Property-Related Acceptable Sources of Funds, Continued
4155.1 5.B.6.b
Documenting
Sales of
Personal
Property
If a borrower plans to sell personal property items to obtain funds for closing,
he/she must provide
- a satisfactory estimate of the value of those items, and
- evidence that the items were sold.
The estimated value of the items being sold may be in the form of
- published value estimates issued by organizations, such as
- automobile dealers, or
- philatelic or numismatic associations, or
- a separate written appraisal by a qualified appraiser with no financial
interest in the loan transaction.
Only the lesser of the estimated value or actual sales price will be considered
as assets to close.
4155.1 5.B.6.c
Net Sales
Proceeds From
Real Property
The net proceeds from an arms-length sale of a currently owned property may
be used for the cash investment on a new house. The borrower must provide
a fully executed HUD-1 Settlement Statement as satisfactory evidence of the
accrued cash sales proceeds.
If the property has not sold by the time of underwriting, the underwriter must
condition the loan approval on verification of the actual proceeds received by
the borrower. The lender must document the
- actual sale, and
- sufficiency of the net proceeds required for settlement.
Note: If the property has not sold by the time of the subject settlement, the
existing mortgage must be included as a liability for qualifying purposes.
